In the fast-paced construction industry, timely and accurate reporting is often overlooked, yet it’s a critical component of a successful business. By leveraging advanced technology and expert accounting services, construction firms can identify potential profitability pitfalls that may impact the business in the long run.
While construction professionals are focused on the day-to-day tasks of building, it’s easy to overlook the importance of financial tracking. Inaccurate reporting can lead to severe economic consequences for construction businesses. Budget overruns can occur due to inaccurate cost estimates, while cash flow problems arise from a lack of clear financial data.
Without timely accurate financial reports, leaders may find it difficult to make important decisions, which can lead to missed opportunities and inefficient resource management. Additionally, inaccurate financial records can result in tax issues, contract disputes, and labor law violations. These issues can damage the business’s reputation and make it difficult to attract clients and talent.
Accurate reporting provides numerous benefits for construction businesses. Timely and accurate financial data empowers construction firms to make informed decisions about resource allocation, project prioritization, and risk management. Construction firms can proactively address risks and minimize losses by analyzing financial trends and identifying potential red flags.
How to Keep Up with Accurate Reporting
We understand when you’re busy running a construction business, financial reports are the last thing on your mind. Luckily, there are many ways for construction businesses to stay updated with their financial reporting, including using construction management software and outsourcing their accounting needs.
Technology has revolutionized the way construction businesses manage their business and finances. Construction businesses can utilize advanced project management tools such as Buildertrend to organize essential tasks and assist with balancing back-office tasks and day-to-day building tasks. However, although tools like these may allow users to track costly errors and delays, it cannot handle financial reporting requirements. It does not provide the full picture of financial performance of the business. It is critical to have a way to focus on the individual projects and also bring that data together with the back-office costs to create a full picture of the business operations.
Outsourcing your accounting needs to a specialized firm can alleviate the burden of managing complex financial tasks that your team or your construction project management tool may need to do. By partnering with an external accounting firm, you can ensure the accuracy and timeliness of your financial data, freeing up your in-house staff to focus on core business activities. Calvetti Ferguson’s team of experts can provide specialized knowledge and resources to help you streamline your financial operations, reduce costs, and prevent pricey errors.
Real Client Example:
One of our clients, a prominent homebuilder, struggled and needed help with project overruns and investor concerns. By utilizing our expertise in construction accounting, we helped them implement a robust project cost-tracking system, analyze profitability on a project-by-project basis, and generate timely financial reports for investors. As a result, the homebuilder improved their project profitability and regained investor confidence.
A strong connection between the back office and field operations is essential for accurate financial reporting. Construction firms can avoid costly errors and delays by ensuring that both teams are aligned and communicating effectively. Accurate and timely financial data allows key decision-makers to make informed choices that drive business growth.
How We Can Help
Calvetti Ferguson offers a comprehensive suite of services tailored to the unique needs of the construction industry. Our experienced team understands the complexities of your business and can provide the expertise you need to navigate challenges such as cost segregation studies, financial audits, and tax compliance. By leveraging our deep industry knowledge and cutting-edge tools, we can help you optimize your financial performance, mitigate risks, and achieve long-term success.
Contact Our Team
We partner with companies, private equity firms, and family offices to provide bespoke solutions to address their complex accounting, tax, risk, and advisory needs. Complete the form below, and a team member will contact you within one business day to discuss your specific needs.